A former Political Economic Adviser at the World Bank, Dr. Mahmoud Alfa, has appealed to Nigerians to support the upcoming 2026 tax reform law, describing it as a crucial step toward strengthening President Bola Tinubu’s fiscal policy and improving the nation’s economy.
In a statement released in Abuja on Friday, Dr. Alfa commended the Tinubu administration for taking what he called “bold and necessary economic reforms” that are gradually stabilising the economy despite ongoing public scepticism.
According to him, Nigeria remains one of the least-taxed economies globally, even though citizens often complain of multiple taxation, particularly in the trade and commerce sectors.
“While the Tinubu-led administration promises reforms to fix multiple taxation and improve the ease of doing business, a survey among citizens shows that the progress is still slow, but there are visible improvements. In a way, the citizens, especially traders, are still faced with multiple taxation as a reality,” he said.
Dr. Alfa, who also serves as the Chief Executive Officer of Vibranium Group, acknowledged the rising public concern about the new tax policy, which will take effect from January 1, 2026. However, he maintained that taxation remains the foundation of national development.
“The essence of taxation cannot be overemphasised. Advanced nations owe their progress to the taxes they collect. In Nigeria, it is still a dream yet to be achieved, as we depend heavily on debt to fund infrastructure, while citizens do not trust the government enough with their taxes,” he added.
Okay News reports that Dr. Alfa also called for renewed trust between the government and the public, emphasising that both sides have a role to play in ensuring accountability and compliance.
“In Nigeria, citizens will gladly evade tax, and rarely are people jailed for tax evasion. This shows that Nigerians are under-taxed compared to developed nations like the UK and Spain. Refusing to pay tax is a crime, just as mismanaging public funds is a crime. It is a chicken-and-egg situation,” he said.
He further praised the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, for his continued efforts to educate the public about the reforms.
Dr. Alfa’s statement came days after Oyedele disclosed that Nigerian states could generate over ₦4 trillion annually from 2026 when the new Value Added Tax (VAT) policy takes effect.
Speaking during the launch of the BudgIT State of States 2025 Report in Abuja, Oyedele noted that the states’ share of VAT revenue would increase to 55 per cent, which could boost fiscal independence across regions.
He pointed out that while the Federation Account Allocation Committee (FAAC) disbursements had doubled — from ₦5.4 trillion in 2023 to ₦11.4 trillion in 2024 — the benefits had yet to translate into better living conditions for citizens.
“States are receiving more money than ever before, but there is a paradox — governments have more naira, while ordinary Nigerians have less disposable income,” Oyedele lamented.
He urged governors to prioritise infrastructure, healthcare, and education, warning that mismanagement could derail the expected benefits of the reforms.
